Transcript Ethics in Mgt., SA Sherlekar, p 31-47

Ethics
Ethics are a set of rules that define right
and wrong conduct. These rules tells us
when our behaviour is acceptable and
when it is disapproved and considered to
be wrong.—Keith Davis
 Standardized form of behaviour.
 It refers to the code of conduct that
guides an individual while dealing in a
situation.

This word comes from Greek root ‘ethos’
meaning character, guiding beliefs,
standards or ideals that pervade a group,
community or people.
 Ethics is a branch of philosophy, which is
concerned with the rightness or
wrongness, goodness or badness of
human conduct.

Nature of ethics
1)
2)
3)
Ethics contain principles of personal and
professional conduct.
Existing norms and judgments may
contain valuable insights but ethics sets
out to criticize and test them in terms of
ultimate norms.
Ethics does not rest on feelings of
approval or disapproval but in the careful
examination of the reality around us.
4)
5)
6)
Ethics is not law. Law may permit things
which are unethical. It is broader than
law, customs and public opinion.
What constitutes ethical behaviour in
one society may be unethical in others.
Ethics involved in all human activities
including business.
Business Ethics
Business ethics refer to the moral
principles which should govern business
activities.
 Ethics refers to a set of moral principles
which should play a very significant role in
guiding the conduct of managers and
employees in the operation of any
enterprise.---- Dale S . Beach
 Business ethics are application of general
ethical rules to business behaviour.

Features of business ethics
BE is an umbrella term which covers all
business practices which are desirable
from the point of view of the society.
 Ethics co-exist with law, but has much
broader coverage.
 The concept of equity is implied in ethics.
It aims at fair and reasonable treatment to
all.

BE emphasize making a businessman
honest, justice and responsible citizen.
 Be create self-imposed discipline on the
part of managers.
Examples
 To charge fair price from the customers.
 To use fair weights for measurement of
commodities.
 To pay taxes to the government honestly.
 To give fair treatment to workers.
 To earn reasonable profit.

Sources of ethics
1.
2.
3.
4.
5.
6.
Genetic Inheritance
Religion : Judaism , Christianity, Islam,
Hindu….
Philosophical system : Epicureans
The legal system
Codes of Conduct : company codes, Policies
Cultural experience.
C. V Murthy, BE, p 18
Principles of Business Ethics
As per Institute of business ethics (IBE) :
 Be trustful
 Keep an open mind
 Meet obligations
 Have a clear documents
 Maintaining accounting control
 Be respectful
T N Chabra p 23

Principles of management – Indian
wisdom
Based on Upanishads and Gita.
1. Each soul is a potential God : Soul is the
spark of the divine . Divine means perfection in
knowledge , wisdom, & Power. Modernaisation
of men is more important than Modernaisation
of plant.
2. Holistic Approach : based on spiritual
principle of unity, oneness, non-dual/ Advaita
concept. The universe is an undivided whole
where every particle is connected with every
other particles. Under this approach
management will not exploit shareholders,
employees, customers, society and nature.
‘Atmano Mokshartham Jagat Hitaya Cha’
3.
4.
Equal Importance to Subjectivity &
Objectivity : Creator is subjective ( intangible -soul). Creation is objective (Tangible --Body).
Value based management is essential to
combine both.
Karma Yoga (selfless work): To work only
you have the right and you have no right to the
fruits of the work. --- Gita. Concentrate your
attention only on your present job. Develop the
healthy attitude that fruit (Karma Fala) is given
to you as Prasad from Divine. Swadharma
should be carried out on general welfare of
society.
5.
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
Yogha Karmasu Kaushalam : Yoga means
excellance at work. Koushalam denotes doing
work with devotion. Your head, heart and soul
co-operate with your hands. The extrinsic
incentives ( money…) plays very minor role as
motivators. Karma yoga and Yogha Karmasu
Kaushalam provides valuable contribution to
TQM.
Why work ? To purify my mind and heart to
become wise. To provide public benefit.
What is work ? To nurture each other. My work
is a form of Yagna, sacrifice. I develop the spirit
of sacrifice. It is a worship of divine.


6.
How to work ? With the spirit of
renunciation i.e Tyag and to serve others.
I must work without self interest.
Spirit of work : Excellence in work.
Perfection in work and quality of output.
Co-operation : By co-operation mutual
help shall achieve the highest human
welfare. Unity is strength. Paraspar Devo
Bhava. (Ethics in Mgt., S.A Sherlekar, p 31-47)
Golden rules of ethics
Everything you want others to do to you,
you shall do to others.
 Do not do to others that which you do not
wish them to do to you.
 Do not do anything to others that if done to
you, would cause harm to you.

Benefits of ethics

Block diagram (BE. O.C.Ferrell, p 14-18)
Employee
Commitment &
Trust
Ethical climate
Investor loyalty &
Trust
Customer
satisfaction
& trust
Profits
Dharma
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Synonymous with integrity. It includes openly
spirit , righteousness (godliness) and
fearlessness.
Spirit : Man is the soul. He is essentially divine.
Righteousness : Do the right thing.
Fearlessness : Dharma stresses fearlessness.
Divine is offering protection to you.
(Ethics in Mgt., S.A Sherlekar, p 52-54)
Nishkama Karma
Do your duty without ego and calculation
of gain or loss. It is the best route for …..
 Self development for managers and
workers
 Aim at Bahu Jana Sukhaya. You grow
others also grow.
 Work is performed without rag (passion) ,
Dwesh ( hatred) Garva (arrogance) and
kama (desire)

Purushartha

1.
The scriptures declare four goals in
human life and they are called as the
Purushartha-s. It is not only denotes
what the objectives of life should be but it
also means what the objectives of life are
as the result of psychological tendencies
of the individual.
It includes the following in same order
Dharma
2.
3.
4.
Artha : Acquisition of wealth
Kama : Desires of varying degree
Moksha : Deliverance of the soul from
bondage
Work Ethos
Work ethos or culture refers to certain
norms of behaviour governing the conduct
of workers involved in work situation to
achieve certain desired objectives.
 It is the involvement of workman with
work. The degree of his involvement
impacts his performance to give high or
law productivity, high or law quality.
 At the basic level, it is about discipline
(Punctuality, behaving properly…)

At the top level, It is about commitment
an accountability.
 Protecting interest of the organisation.
No employee should make any adverse
comments about the organisation in
public.
 To perform one’s jobs with devotion.
Reasons for poor work culture.
1. Lack of commitment
2. Lack of discipline.

Poor working condition
4. Outside plitical interface
5. High rate absenteeism
6. Lack of recognition of merit by
management
7. Decline general moral standards
( Ethics in mgt. B. Ghosh p 54-56)
3.
Model of management in Indian
Socio –Political environment
Insights in to Indian ethos
1. Management attitude : Top management must
have firm belief in values-oriented holistic
management. Work is worship.
2. Humanizing the organisation
3. Interiorizing management : Self management.
The manager must learn to manage and control
himself.
4. Self introspection : Self study, self analysis and
self criticism to locate areas of friction and
disharmony. The master key is within our inner
mind or consciousness.
5.
6.
7.
8.
Brain-Stilling :Decision making in silence. A
perfect Mounum.
Stepping Back ( For a While) : The stepping
back from a situation for a while enables you to
control and even master the situation.
Self-dynamising Meditation : It is the meditation
of transformation of lower consciousness in to
higher consciousness.
Role of intuition : It is the act of coming to
direct knowledge or certainty without reasoning
or inferring. It is effective for prompt and sound
decision.
(Ref slide—11 Principles of management –Indian wisdom,
Read-- Ethics in mgt. B. Ghosh p 57-73)